Russia, Vietnam in Energy Coop

Russia, Vietnam in Energy CoopRussia, Vietnam in Energy Coop

Gazprom and its oil arm Gazprom Neft have agreed with the Vietnamese energy company Petrovietnam to jointly develop Russia’s Arctic offshore oil and gas in Siberia, as well as supply the country’s ESPO blend crude to Vietnam. The world’s largest gas producer Gazprom and Petrovietnam agreed on the joint exploration of gas deposits in western and southern Siberia, RT reported.

Gazprom Neft signed a separate deal with Petrovietnam to develop Russia’s Dolginskoye oil field that has reserves estimated at more than 200 million tons (1.5 billion barrels). It is located in Russia’s Prirazlomnoye field on the Pechora Sea shelf, part of the country’s first offshore Arctic field which opened last year.

The companies have also signed a deal under which Gazprom Neft will supply ESPO blend crude oil to Vietnam, said Reuters.

"Today's agreement will strengthen our partnership in the production of gas in Russian territory. It’s the first time a company from the Asia-Pacific will act as a partner and co-investor in the development of Gazprom’s promising Russian deposits,” Aleksey Miller, Gazprom CEO said in a statement.

Russia and Vietnam also agreed to boost bilateral trade to $10 billion by 2020. In 2013 trade turnover between Russia and Vietnam grew 8.5 percent to $4 billion.

"We have real opportunities and necessary mechanisms for this," said Russian President Vladimir Putin, adding that a high-level ad hoc working group is now negotiating the implementation of 17 investment projects worth more than $20 billion.